Brad Friedel chose Tottenham over Liverpool after being offered the chance of becoming the No1 at White Hart Lane.
The Birmingham Mail says Villa were only willing to give the 40-year-old a new 12-month deal but Spurs have matched Liverpool's offer of a two-year deal.
Friedel has opted for a switch to White Hart Lane rather than returning to Anfield because of the increased prospects of first-team football under Harry Redknapp.
The American veteran, who was also wanted by Albion, is likely to be Spurs' new No.1, possibly spelling the end of Heurelho Gomes with Carlo Cudicini likely to remain as understudy.
Friedel could not be given the same assurances at Liverpool, where Pepe Reina is the established first choice, while Villa were also looking to introduce a younger keeper to the first team.